Results tagged “TARP” from Regulating Wall Street

During the recent credit crisis, U.S. banks in urgent need of capital quickly receivedbailout funds from a government fearful of a systemic collapse.

As a way of avoiding the next financial debacle and the consequent socialization of losses, banks should be required to avoid becoming undercapitalized in the first place.

Before providing banks with public funds and putting the taxpayer at risk, the government should require that troubled lenders help themselves by raising capital from their own stockholders through coercive rights.Read the full opinion editorial at Bloomberg.com.

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The Dodd-Frank Act, signed into law in July 2010, represented the most significant and controversial overhaul of the U.S. financial regulatory system since the Great Depression. Forty NYU Stern faculty, including editors Viral V. Acharya, Thomas F. Cooley, Matthew P. Richardson, and Ingo Walter, provide a definitive analysis of the Act, expose key flaws and propose solutions to inform the rules’ adoption by regulators, in a new book, Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance (Wiley, November 2010).